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Property sale & purchase timescales... realistic?

17 replies

UndertonesOfCake · 21/10/2021 12:14

Long story short, my relative died. I am to inherit enough money to get me on the housing ladder. I am a beneficiary but not executor of the will, if that makes any difference.

However, my current landlord is evicting me early September 2022 - technically I can drag this out a bit by waiting for court proceedings, but I'd prefer not to. I have a dog and my income was hit hard by covid, so finding a new landlord will be somewhere between very difficult and impossible.

With probate etc., the target date for getting the relative's house on the market is January 2022. It's habitable but a doer-upper (needs render sorted, rewiring etc.), having been neglected for the last 30 years, but it's large, in a very fashionable part of town, very near a huge park, and has the unusual feature of having parking for several cars where most in the area have no off road parking at all. Valuation is £750-800k (NB I'm not the only beneficiary!)

Is it realistic to think that I might be able to sell the house, and buy one for myself, and complete by early September? Or am I completely delusional?

Also - will estate agents entertain me starting the viewing & purchase process before the relative's house has been sold? It's not technically my house, so I don't know whether they'll accept it essentially forming part of the chain.

OP posts:
Paranoidandroidmarvin · 21/10/2021 12:22

My last few moved where
3 months
One year
And if my exchange goes through today it will 10 weeks.

There is no answer. Anything can happen. My year one was because the seller pulled out on exchange day. There can be problems further down the chain. The answer I always give is how long is a piece of string.

Sorry. I know that isn’t the answer ur looking for.

Paranoidandroidmarvin · 21/10/2021 12:24

Sorry. Forgot to answer. My estate agents and the ones around here wouldn’t let anyone look without having sold as houses are selling so quickly at the moment. Ours sold in a few hours.

mindutopia · 21/10/2021 12:27

I think it would be tight to think that you could complete on a sale, then probate, and a purchase in 8-9 months. We are chain-free, buying a house where sellers are also not in a chain (they are moving into rented that they already have arranged as they are waiting on a build to start on new house). I am hoping we could complete in 3 months. But it's taken us 18 months to find a property and get an offer accepted after many, many viewings and offers.

You absolutely can view properties. EAs will ask about your position, but you don't need to provide proof usually until you submit an offer. They will want to see the money on your account usually though before they consider the offer. So I would probably not start looking until you are at that point. It depends on the sort of house and the market where you are, but here houses have been on the market only days before being under offer.

TheEconomista · 21/10/2021 13:02

Will you need a mortgage on top of the proceeds of the sale? If so, getting approval in principle in advance will also be important as EAs will ask you to prove affordability.

If probate has been granted before the house goes on the market, and it's likely to sell fast (sounds like it) then as long as you have a good, proceedable buyer, and your onward purchase doesn't have a big/difficult chain, then there's no reason to think you couldn't be in by September.

There are a lot of dependencies there though and you'll have to be strategic. Who is driving the probate process? Is the executor on top of it? Do you have a good solicitor? Probate is back to a more normal time now but there are lots of things to do - the whole estate needs to be managed, not just the house (i.e. all accounts found and closed, documentation provided etc.) so with Christmas and potentially another Covid winter this could take longer than expected. You may have to chase it yourself to keep it moving.

You'll also have to have a good buyer for the house - chain free, able and willing to move quickly - and a good seller, again, preferably chain free and willing to drive hard to get to exchange. These things are achievable but you can't leave it to chance. Also chains collapse all the time - what's your plan B if it doesn't work out? Can you move into a shared house/be a lodger/stay with relatives for a short while?

InTheLabyrinth · 21/10/2021 13:12

When I inherited from my grandmother, the money from the house sale didnt come to me straight away. So the house sold, and there was still a load of admin to do before the money was distributed.

Could you get enough of a mortgage to buy now, with a low redemption clause, and pay off the mortgage once the inheritance is available to you?

TheNoonBell · 21/10/2021 14:29

We took 4 months from offer to completion earlier this year so it should be possible assuming the relative's house sells quickly. If it is a do-er up-er then it may be tricky to sell as the cost of renovations is insane at the moment as are the leadtimes on parts so discounting for a quick sale might be wise if the other beneficiaries agree.

TheNoonBell · 21/10/2021 14:31

@InTheLabyrinth

When I inherited from my grandmother, the money from the house sale didnt come to me straight away. So the house sold, and there was still a load of admin to do before the money was distributed.

Could you get enough of a mortgage to buy now, with a low redemption clause, and pay off the mortgage once the inheritance is available to you?

Looking at an offset mortgage might be a good idea if the OP can take much higher initial payments until the inheritance comes.
UndertonesOfCake · 21/10/2021 14:54

Will you need a mortgage on top of the proceeds of the sale? If so, getting approval in principle in advance will also be important as EAs will ask you to prove affordability.

Unfortunately I don't think anyone will give me a mortgage. I went self employed a few months before covid hit, and am (partially) in an industry that was hard hit by covid. In essence I don't have long term accounts and as I understand it mortgage lenders would be very nervous about lending to anyone whose income has been hit by covid.

Thankfully I'm in a cheaper part of the country, don't need such a large house, or to live in a fashionable area, so I should be able to buy somewhere outright with my portion of the sale (or at the very least to be able to top it up with the deposit I'd been saving for).

If probate has been granted before the house goes on the market, and it's likely to sell fast (sounds like it) then as long as you have a good, proceedable buyer, and your onward purchase doesn't have a big/difficult chain, then there's no reason to think you couldn't be in by September. There are a lot of dependencies there though and you'll have to be strategic. Who is driving the probate process? Is the executor on top of it? Do you have a good solicitor? Probate is back to a more normal time now but there are lots of things to do - the whole estate needs to be managed, not just the house (i.e. all accounts found and closed, documentation provided etc.) so with Christmas and potentially another Covid winter this could take longer than expected. You may have to chase it yourself to keep it moving.

The idea is to get probate granted before the house goes on the market. I've heard of there being difficulties with getting builders and materials, but there are few doer-uppers in the local area (I've checked RM!) so someone looking for a project has limited choice. Fully renovated it would be worth about £1.1m so ought to attract at least one decent buyer. Hopefully.

The executors are my DM and DAunt - sadly but helpfully DAunt has been an executor several times in the last few years, so is familiar with the form filling, and is quite an efficient person anyway. DM is more local and is dealing with the more practical side like clearing the house (a mammoth job!). No solicitor has been mentioned, I think all things IHT are being done on a DIY basis. I know they have been tackling the accounts as well as the house. Fingers crossed there won't be another covid lockdown that prevents viewings.

Also chains collapse all the time - what's your plan B if it doesn't work out? Can you move into a shared house/be a lodger/stay with relatives for a short while?

Unfortunately I don't really have a Plan B. I'm a self employed cake maker and make cakes in my domestic kitchen (5* hygiene rating before someone derails the thread there...). Needing the kitchen to myself, and for it to be kept very clean, doesn't exactly lend itself to situations involving being a lodger or in a houseshare.

I don't have family in the area - I moved up north for uni and never moved back - and need to be close to my customers for obvious reasons. You can't post a wedding cake! Regardless, DM wouldn't have space for me and DF has a kitchen that would require napalm total renovation before the EHO would be happy with it.

Only plan B I have is to drag out the eviction process as long as possible tbh, via the courts. It will buy me a few months, but not more. After that I'll be homeless and jobless.

When I inherited from my grandmother, the money from the house sale didnt come to me straight away. So the house sold, and there was still a load of admin to do before the money was distributed.

Oh crikey Confused

Could you go into a little more detail about the admin that was required after the house was sold? Had probate been granted before it was sold?

OP posts:
BasiliskStare · 21/10/2021 15:23

I think Spet 2022 is doable for probate as long as you can sell the house quickly & administer the money. When DH & siblings sold his father's house the main thing was they agreed on a price ( but they get on well ) - I think the main thing is to agree on a reasonable price for the house and agree assets with those who will also inherit. ( if there is a will - this will be easier )

neededafart · 21/10/2021 15:28

Time scale wise with the inheritance, you may not get the funds straight away. My friend recently inherited. It took over a year from her mum passing to actually get the funds. She had lots in shares and money squirrelled away in various bonds etc.

MilduraS · 21/10/2021 15:49

I worked I probate for a while and often families argued when offers were received. Is anyone likely to insist on holding out for the maximum amount possible?

After the sale the administration of the estate needs to be signed off by executors. If there are delays with other assets I don't think it can be done but you might get an interim payment (my knowledge is about 10 years old though)

Waspie · 21/10/2021 15:52

I'm sorry for your loss OP.

Why are the exors leaving it until probate has been granted to put the house on the market? The house sale and the wait for probably can happen simultaneously and this would save some waiting time. You only have to have the grant of probably in order to complete the sale.

My recent timeline for administering a simple estate involving a house, various savings accounts and a few stocks & shares was:
October - relative died
November - Probate application made
December - House marketed and sale agreed
February - probate granted
March - House sale completed
June - final disbursement of funds.

What held up final disbursement was British Gas! I had to wait an age to get the final bill from them.

KonTikki · 21/10/2021 16:12

My inheritance through Probate took 15 months to come through earlier this year.
And there was no house to sell.

BasiliskStare · 21/10/2021 16:33

@MilduraS - my point exactly - DH & his siblings were sensible about what they would accept for house - one wanted more but then just decided - get it done and dusted so they all agreed on the offer - I can imagine it can make life harder if one holds out for an unrealistic price when others want it to be sold more quickly.

MilduraS · 21/10/2021 18:59

[quote BasiliskStare]@MilduraS - my point exactly - DH & his siblings were sensible about what they would accept for house - one wanted more but then just decided - get it done and dusted so they all agreed on the offer - I can imagine it can make life harder if one holds out for an unrealistic price when others want it to be sold more quickly.[/quote]
I wanted to bash my head on the table sometimes! I remember a family arguing for 8 months over a sale price and they were constantly hassling them solicitor to force their point of view. The estate was administered on a fixed percentage fee but once they stopped cooperating and began creating extra work above the usual they were moved to hourly rates. Every phone call cost a minimum of £25 plus VAT (£250 hourly rate charged in 6 minute increments). After all that they ended up with a whopping £200 extra each. The one who was holding out said "I told you so" when they finally got the price they wanted but after 7 months it was just how much the market had moved 🤦🏻‍♀️

UndertonesOfCake · 21/10/2021 19:53

I worked I probate for a while and often families argued when offers were received. Is anyone likely to insist on holding out for the maximum amount possible?

Thankfully, I doubt it. The two executors work well together, don't need the money and are rather on the side of a quick sale. There's someone else with an interest (will receive money via a deed of variation) and who needs the money but could ultimately be overruled. I'm the only one who needs the money and has a timescale.

I tend to think that, like fish, properties left on the shelf for too long start to smell. I think the initial plan is to put it on the market for a fortnight, see what offers come in, and go from there.

Why are the exors leaving it until probate has been granted to put the house on the market? The house sale and the wait for probably can happen simultaneously and this would save some waiting time. You only have to have the grant of probably in order to complete the sale.

In the hope that it happens quicker once it goes on the market. Plus an estate agent advised them not to put it on the market in the final quarter of the year. People are too focussed on Christmas and it's better to wait until January apparently Hmm I don't have the ammunition to argue that one.

OP posts:
BasiliskStare · 22/10/2021 12:18

I would ask another estate agent and as a probate sale maybe do a one day showing ( for multiple people ) at a reasonable price and see if you get an offer.

Others can answer better but surely you need to know what the house is sold for to do probate ( or have I misunderstood)

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